Monthly update: September 2026

What changed, and why

What changed this month?

The government borrowed £24.5 billion in September 2026, the gap between what it spent and what it raised. That was £1.8 billion (7.7%) more than in September 2025 and the second-highest September since monthly records began, behind only 2020. It was also £1.9 billion more than the OBR had forecast. Net debt reached a provisional £3,005.0 billion at the end of the month, the first time it has passed £3 trillion, though as a share of the economy it fell to 94.0% of GDP, 0.7 percentage points lower than a year earlier.

Why did borrowing move?

Spending grew faster than receipts. Central government receipts rose £4.5 billion on the year, but its day-to-day spending rose £6.5 billion, while its net investment fell £0.8 billion, so central government borrowed £21.2 billion, £1.5 billion more than a year earlier. Local government borrowed £0.4 billion more.

What happened to tax receipts?

Central government receipts were £90.1 billion, up £4.5 billion (5.2%) on September 2025. Income-related taxes rose 7.4% to £23.2 billion, corporation tax rose 9.0% to £8.9 billion and VAT rose 3.7% to £18.3 billion. National Insurance contributions were £17.2 billion, up 4.3%.

What happened to spending?

Central government day-to-day spending was £98.6 billion, up £6.5 billion (7.0%) on the year, with the rise spread across the larger parts. Net social benefits rose £1.6 billion to £30.6 billion. That total includes £1.9 billion for Winter Fuel Payments, which the ONS records in September, when eligibility is set, even though they are paid from November. Spending on goods and services rose £1.5 billion and transfers to local government £1.7 billion.

What happened to debt interest?

Central government interest payable was £10.9 billion in September, £1.6 billion (16.6%) more than a year earlier and the highest September since monthly records began in 1997. The RPI-linked capital uplift on index-linked gilts accounted for £4.0 billion of it, largely because the RPI rose 0.6% between June and July 2026.

How does this compare with the OBR forecast?

Borrowing was £1.9 billion above the OBR's forecast for the month. For the financial year so far, borrowing of £97.8 billion is £4.4 billion lower than the same period last year but £6.0 billion above the OBR's forecast. Central government accounts for £3.2 billion of that, because its spending is £8.9 billion above profile (debt interest £3.8 billion and social benefits £2.5 billion the largest parts) while receipts are only £5.8 billion ahead, and public corporations for £2.6 billion. The ONS revised borrowing for the year to August down by £4.0 billion, mostly on higher tax receipts. The forecast compared against is still the OBR's March 2026 one, which the Budget forecast of 28 October 2026 replaces. One month is a weak guide and figures are routinely revised.